• NV5 Announces Record Second Quarter Results; Exceeds Analyst Consensus and Raises Full-Year 2021 Guidance

    ソース: Nasdaq GlobeNewswire / 10 8 2021 15:02:00   America/Chicago

    HOLLYWOOD, Fla., Aug. 10, 2021 (GLOBE NEWSWIRE) -- NV5 Global, Inc. (Nasdaq: NVEE) ("NV5" or the "Company"), a provider of compliance, technology, and engineering consulting solutions, today reported financial results for the second quarter ended July 3, 2021.

    "NV5’s record performance in the second quarter, led by our strategy, business model, and ability to adapt to market conditions, resulted in the highest gross revenues, net income, adjusted EBITDA, and adjusted EPS that NV5 has delivered in a quarter since inception," said Dickerson Wright, PE, Chairman and CEO of NV5. Wright added, "Public sector investments in infrastructure and utility safety and reliability continue to drive growth across our service verticals. The strong performance of our real estate transactions, energy efficiency, and international businesses demonstrates the ongoing recovery of our businesses that were impacted by the COVID pandemic. We strengthened our Environmental Health Sciences (EHS) vertical with the acquisition of PES Environmental in May. Environmental, social, and governance (ESG) continue to be increasing drivers of our business with the EHS vertical growing 71% year-over-year in Q2 supported by the organic growth of our real estate transactions business. We expect to build upon our strong second quarter momentum and are raising our guidance on gross revenues, GAAP EPS and adjusted EPS for the full year 2021."

    Second Quarter 2021 Results

    • Gross revenues in the second quarter of 2021 were $179.5 million compared to $162.7 million in the second quarter of 2020, a 10% increase.
    • Net income in the second quarter of 2021 was $13.6 million compared to $4.5 million in the second quarter of 2020, a 203% increase.
    • Adjusted EBITDA in the second quarter of 2021 was $34.2 million compared to $26.9 million in the second quarter of 2020, a 27% increase.
    • GAAP EPS in the second quarter of 2021 was $0.91 per share compared to $0.36 per share in the second quarter of 2020, a 153% increase.
    • Adjusted EPS in the second quarter of 2021 was $1.34 per share compared to $0.93 per share in the second quarter of 2020, a 44% increase. Diluted weighted average shares were 14,965,188 in the second quarter of 2021 compared to 12,609,918 in the second quarter of 2020.
    • Full year 2021 guidance as follows:
      • Increase gross revenues to a range of $705 million to $727 million (previously $695 million to $720 million).
      • Increase GAAP EPS to a range of $2.45 per share to $2.84 per share (previously $2.36 per share to $2.78 per share).
      • Increase Adjusted EPS to a range of $4.20 per share to $4.55 per share (previously $4.05 per share to $4.45 per share).

    Six Months Ended July 3, 2021 Results

    • Gross revenues in the first half of 2021 were $332.6 million compared to $328.2 million in the first half of 2020.
    • Cash flows from operations in the first half of 2021 were $62.2 million compared to $50.7 million in the first half of 2020, a 23% increase.
    • Net income in the first half of 2021 was $19.1 million compared to $8.7 million in the first half of 2020, a 120% increase.
    • Adjusted EBITDA in the first half of 2021 was $58.5 million compared to $51.1 million in the first half of 2020, a 14% increase.
    • GAAP EPS in the first half of 2021 was $1.35 per share compared to $0.69 per share in the first half of 2020, a 96% increase.
    • Adjusted EPS in the first half of 2021 was $2.25 per share compared to $1.77 per share in the first half of 2020, a 27% increase. Diluted weighted average shares were 14,196,035 for the six months ended July 3, 2021 compared to 12,601,830 in the six months ended June 27, 2020.

    Use of Non-GAAP Financial Measures; Comparability of Certain Measures

    Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) is not a measure of financial performance under GAAP. Adjusted EBITDA reflects adjustments to EBITDA to eliminate stock-based compensation expense and acquisition-related costs. Management believes adjusted EBITDA, in addition to operating profit, Net Income, and other GAAP measures, is a useful indicator of our financial and operating performance and our ability to generate cash flows from operations that are available for taxes, capital expenditures, and debt service. A reconciliation of Net Income, as reported in accordance with GAAP, to adjusted EBITDA is provided at the end of this news release.

    Adjusted earnings per diluted share (“Adjusted EPS”) is not a measure of financial performance under GAAP. Adjusted EPS reflects adjustments to reported diluted earnings per share (“GAAP EPS”) to eliminate amortization expense of intangible assets from acquisitions, net of tax benefits, and acquisition-related costs. As we continue our acquisition strategy, the growth in Adjusted EPS may increase at a greater rate than GAAP EPS. A reconciliation of GAAP EPS to Adjusted EPS is provided at the end of this news release.

    Our definition of Adjusted EBITDA and Adjusted EPS may differ from other companies reporting similarly named measures. These measures should be considered in addition to, and not as a substitute for, or superior to, other measures of financial performance prepared in accordance with GAAP, such as Net Income, and Diluted Earnings per Share.

    Conference Call 

    NV5 will host a conference call to discuss its second quarter 2021 financial results at 4:30 p.m. (Eastern Time) on August 10, 2021. The accompanying presentation for the call is available by visiting http://ir.nv5.com.

    Date:Tuesday, August 10, 2021
    Time:4:30 p.m. Eastern
    Toll-free dial-in number:+1 833-900-1538
    International dial-in number:+1 236-712-2278
    Conference ID:6988609
    Webcast:http://ir.nv5.com

    Please dial-in at least 5-10 minutes prior to the start time to allow the operator to log your name and connect you to the conference.

     

    The conference call will be webcast live and available for replay via the “Investors” section of the NV5 website.

    About NV5

    NV5 Global, Inc. (NASDAQ: NVEE) is a provider of compliance, technology, engineering, and environmental consulting solutions for public and private sector clients supporting sustainable infrastructure, utility, and building assets and systems. The Company focuses on multiple verticals: testing, inspection & consulting, infrastructure engineering, utility services, buildings & program management, environmental health sciences, and geospatial technology services to deliver innovative, sustainable solutions to complex issues and improve lives in our communities. NV5 operates out of more than 100 offices nationwide and internationally. For additional information, please visit the Company’s website at www.NV5.com. Also visit the Company on LinkedIn, Twitter, Facebook, and Instagram.

    Forward-Looking Statements

    This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The Company cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements contained in this news release and on the conference call. Such factors include: (a) changes in demand from the local and state government and private clients that we serve; (b) general economic conditions, nationally and globally, and their effect on the market for our services; (c) competitive pressures and trends in our industry and our ability to successfully compete with our competitors; (d) changes in laws, regulations, or policies; and (e) the “Risk Factors” set forth in the Company’s most recent SEC filings. All forward-looking statements are based on information available to the Company on the date hereof, and the Company assumes no obligation to update such statements, except as required by law.

    Investor Relations Contact

    NV5 Global, Inc.
    Jack Cochran
    Vice President, Marketing & Investor Relations
    Tel: +1-954-637-8048
    Email: ir@nv5.com

    Source: NV5 Global, Inc.


    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (UNAUDITED) 
    (in thousands, except share data)

     July 3, 2021 January 2, 2021
    Assets   
    Current assets:   
    Cash and cash equivalents$113,023   $64,909  
    Billed receivables, net109,122   142,705  
    Unbilled receivables, net83,586   74,458  
    Prepaid expenses and other current assets11,013   6,804  
    Total current assets316,744   288,876  
    Property and equipment, net29,444   27,011  
    Right-of-use lease assets, net44,196   43,607  
    Intangible assets, net175,093   174,931  
    Goodwill364,562   343,796  
    Other assets3,364   2,954  
    Total Assets$933,403   $881,175  
        
    Liabilities and Stockholders’ Equity   
        
    Current liabilities:   
    Accounts payable$38,446   $39,989  
    Accrued liabilities47,319   45,325  
    Billings in excess of costs and estimated earnings on uncompleted contracts16,805   24,962  
    Client deposits706   380  
    Current portion of contingent consideration3,933   1,334  
    Current portion of notes payable and other obligations26,989   24,196  
    Total current liabilities134,198   136,186  
    Contingent consideration, less current portion1,374   1,066  
    Other long-term liabilities39,762   38,737  
    Notes payable and other obligations, less current portion142,347   283,326  
    Deferred income tax liabilities, net29,736   27,791  
    Total liabilities347,417   487,106  
        
    Commitments and contingencies   
        
    Stockholders’ equity:   
    Preferred stock, $0.01 par value; 5,000,000 shares authorized, no shares issued and outstanding—   —  
    Common stock, $0.01 par value; 45,000,000 shares authorized, 15,365,382 and 13,270,131 shares issued and outstanding as of July 3, 2021 and January 2, 2021, respectively154   133  
    Additional paid-in capital441,049   268,271  
    Retained earnings144,783   125,665  
    Total stockholders’ equity585,986   394,069  
    Total liabilities and stockholders’ equity$933,403   $881,175  
            


    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME
    (UNAUDITED)
    (in thousands, except share data)

     Three Months Ended Six Months Ended
     July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020
    Gross revenues$179,503   $162,689   $332,598   $328,169  
            
    Direct costs:       
    Salaries and wages45,025   45,079   86,485   90,114  
    Sub-consultant services29,978   25,244   53,225   52,670  
    Other direct costs13,114   8,914   22,912   17,402  
    Total direct costs88,117   79,237   162,622   160,186  
            
    Gross profit91,386   83,452   169,976   167,983  
            
    Operating expenses:       
    Salaries and wages, payroll taxes and benefits44,213   44,149   87,164   89,706  
    General and administrative13,367   11,824   24,915   24,980  
    Facilities and facilities related5,038   5,357   10,135   10,754  
    Depreciation and amortization10,216   11,160   19,656   22,200  
    Total operating expenses72,834   72,490   141,870   147,640  
            
    Income from operations18,552   10,962   28,106   20,343  
            
    Interest expense(1,568) (4,403) (3,886) (8,190)
            
    Income before income tax expense16,984   6,559   24,220   12,153  
    Income tax expense(3,346) (2,056) (5,102) (3,462)
    Net income and comprehensive income$13,638   $4,503   $19,118   $8,691  
            
    Earnings per share:       
    Basic$0.95   $0.37   $1.40   $0.71  
    Diluted$0.91   $0.36   $1.35   $0.69  
            
    Weighted average common shares outstanding:       
    Basic14,419,671   12,308,965   13,648,247   12,271,221  
    Diluted14,965,188   12,609,918   14,196,035   12,601,830  
                


    NV5 GLOBAL, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
    (in thousands)

     Six Months Ended
     July 3, 2021 June 27, 2020
    Cash flows from operating activities:   
    Net income$19,118   $8,691  
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization21,936   23,277  
    Non-cash lease expense4,884   4,307  
    Provision for doubtful accounts583   1,690  
    Stock-based compensation7,790   6,880  
    Change in fair value of contingent consideration235   —  
    Gain on disposals of property and equipment(581) (350)
    Deferred income taxes(2,988) (869)
    Amortization of debt issuance costs454   442  
    Changes in operating assets and liabilities, net of impact of acquisitions:   
    Billed receivables36,727   (1,134)
    Unbilled receivables(7,238) (2,286)
    Prepaid expenses and other assets(4,208) 2,117  
    Accounts payable(2,446) 138  
    Accrued liabilities(4,187) 1,922  
    Income taxes payable—   613  
    Billings in excess of costs and estimated earnings on uncompleted contracts(8,158) 5,241  
    Deposits307   66  
    Net cash provided by operating activities62,228   50,745  
        
    Cash flows from investing activities:   
    Cash paid for acquisitions (net of cash received from acquisitions)(21,652) —  
    Proceeds from sale of assets460   437  
    Purchase of property and equipment(4,028) (6,145)
    Net cash used in investing activities(25,220) (5,708)
        
    Cash flows from financing activities:   
    Proceeds from common stock offering172,500   —  
    Payments on notes payable(5,325) (8,415)
    Payments of contingent consideration(413) (913)
    Payments of borrowings from Senior Credit Facility(145,082) (1,875)
    Payments of common stock offering costs(10,522) —  
    Purchases of common stock tendered by employees to satisfy the required withholding taxes related to stock-based compensation(52) —  
    Payments of debt issuance costs—   (447)
    Net cash provided by (used in) financing activities11,106   (11,650)
        
    Net increase in cash and cash equivalents48,114   33,387  
    Cash and cash equivalents – beginning of period64,909   31,825  
    Cash and cash equivalents – end of period$113,023   $65,212  
            


    NV5 GLOBAL, INC. AND SUBSIDIARIES
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    TO COMPARABLE GAAP FINANCIAL MEASURES
    (UNAUDITED)
    (in thousands)

    RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

      Three Months Ended Six Months Ended
      July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020
    Net Income$13,638   $4,503   $19,118   $8,691  
    Add:Interest expense1,568   4,403   3,886   8,190  
     Income tax expense3,346   2,056   5,102   3,462  
     Depreciation and amortization11,394   12,237   21,936   23,277  
     Stock-based compensation4,094   3,501   7,790   6,880  
     Acquisition-related costs180   231   629   571  
    Adjusted EBITDA$34,220   $26,931   $58,461   $51,071  

    RECONCILIATION OF GAAP EPS TO ADJUSTED EPS

      Three Months Ended Six Months Ended
      July 3, 2021 June 27, 2020 July 3, 2021 June 27, 2020
    Net Income - per diluted share$0.91   $0.36   $1.35   $0.69  
    Per diluted share adjustments:       
    Add:Amortization expense of intangible assets and acquisition-related costs0.58   0.77   1.21   1.46  
     Income tax expense(0.15) (0.20) (0.31) (0.38)
    Adjusted EPS$1.34   $0.93   $2.25   $1.77  

     


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